Sales tax department told to start auto and cotton tax analysis

CBR Board-in-Council has directed the sales tax department to start analysis of automobile and cotton sectors to ascertain the actual sales tax paid vis-a-vis their production. Official sources told Business Recorder on Saturday that this is termed as 'gap analysis' to work out the actual revenue potential of these sectors in the remaining months of fiscal year 2004-05.
The analysis would also cover the factors responsible for any increase or decrease in sales tax collection by these sectors.
Gap analysis will cover an in-depth examination of automobile and cotton sectors for specifying the exact amount of sales tax collected by them.
Officials claimed that the analysis conducted by sales tax department is much better as compared to the analysis submitted by CBR Fiscal Research and Statistics Wing. Sales tax department uses latest data and information collected from the field formation for this purpose.
The officials of Fiscal Research and Statistics opined that analysis conducted by the concerned wing is more comprehensive as compared to sales tax department.
Meanwhile, the Board-in-Council decided that gap analysis of automobile and cotton sectors should be conducted to ascertain the actual revenue potential of these units.
Cement and sugar sectoral analysis is already underway and an exercise has been started to obtain further data from the collectorates, commissionerates and associations of cement and sugar manufacturers.
The Board-in-Council has also decided to formulate a welfare policy for CBR employees. This would cover health, education, housing and transport facilitating.
On the issue of weaknesses in the income tax data and its reporting, officials said that it has been reported that substantial progress has been made in removing bottlenecks in the income tax reporting system. In this regard, income tax officials will present a report to CBR Chairman.
They said that the issue of income tax refund vouchers was also taken up in the previous Board-in-Council meeting. Member Direct Taxes had informed the council that existing limit of signing of refund cheques valuing Rs 50,000 by single signature was enhanced in 1994. Since, above Rs 70,000 refund vouchers are already ready and finalised. It has been decided that the present practice of single signature would continue in future. However, number and date of advice should invariably be noted on the back of the refund cheques.
The Board-in-Council also directed CBR Members to examine the possibility of creation a common pool through contribution and rewards for welfare of all tax officials.
Regarding shifting of Directorate General of Training (Customs, Sales Tax and Central Excise), Islamabad to Karachi, Member Admin informed the council that the shifting process was not completed by the deadline of February 28, 2005.